|
Wealthfinder identifies those households with the greatest abundance of material possessions, riches, and affluence. Utilizing Data Axle’s proprietary variables and census variables, this model estimates the net worth (in dollar amount) of a householder.
Wealth is one of the strongest discriminating factors that impacts direct response. Whether you are selling credit cards, magazine subscriptions, mutual funds, or insurance a household's wealth determines what products to offer and the likelihood of receiving a response.
WealthFinder using Data Axle data is one of the best predictors of wealth available in the market place. WealthFinder is a proprietary data element specifically designed to rank the wealth of every household in the United States. It strongly correlates to attributes associated with wealth such as income, investment activity, philanthropic behavior, and other behavioral and lifestyle characteristics.
The WealthFinder algorithm was built using variables such as income, home value, education level, tangible and intangible assets, and more. These variables are proven indicators of a household's wealth status. All of the WealthFinder information is derived from public and self-reported sources captured during our Consumer Database compilation process. The algorithm does not include any ethnic, racial, religious indicators, or credit data assuring that biases and Fair Credit Reporting Act guidelines are non-issues.
WealthFinder is a proprietary variable that Data Axle has developed to identify those households with the greatest abundance of material possessions, riches, and affluence. The model is comprised of eleven components, utilizing Data Axle’s consumer proprietary variables and census variables.
The WealthFinder model estimates the net worth (in dollar amount) of a householder. Households are ranked into 20 groups from ‘A’ to ‘T’. Rank ‘A’ represents household with the highest estimated wealth, while Rank ‘T’ represents households with the lowest estimated wealth.
Methodology
» Developed using a selection of wealth indicator variables from the Consumer Data Axle Database and census data.
» Each variable is divided based on percentiles and assigned a score and weight.
» The final WealthFinder score is calculated by summing the weighted output.
» Net Worth ranges are based on data from the Federal Reserve.
Key Features
» Utilizes both household and neighborhood level data.
» Does not include any ethnic, racial, religious indicators or credit data.
» 20 rank-ordered groups:
» Rank ‘A’ = Top rank, represents households with the highest estimated wealth.
» Rank ‘T’ = Bottom rank, represents households with the lowest estimated wealth.
» Top five ranks (A – E) each contain approximately 1% of households (approx 5%).
» Eleven ranks in the middle (F – P) each contain approximately 5% of households (approx 55%).
» Bottom four ranks (Q – T) each contain approximately 10% of households (approx 40%).
Facts about WealthFinder
» Compared to Households in the Bottom 40% (Q to T) of WealthFinder scores. Households in the Top 20% (A to H) of WealthFinder scores are:
» 4.38 times as likely to be homeowners
» 7.09 times as likely to have a post-graduate degree
» 1.8 times as likely to have a child between the ages of 12 and 17
» 5 times as likely to be a Luxury Auto Buyer (Behavioral Models)
» 6 times as likely to be a Wine Lover (Behavioral Models)
» 7.7 times as likely to be a frequent Book Buyer (Behavioral Models)
» 27 time as likely to live in a zip code classified as “Country Club Chic” (GeoDNA)
» 1.5 times as likely to live in New England or Pacific region
» 11 times as likely to be a Donor (Behavioral Models) |
